How Much is a Property in Dubai for a UK Investor?

Dubai has established an unparalleled reputation for luxury living and spectacular properties. But what is price tag attached to buying a property this international centre in the heart of the United Arab Emirates?

As a UK investor, there can be differences in terms of both the costs and the buying process. The best course of action is to seek expert advice, however, it’s helpful to have an idea of what may be involved.

Before making a purchase in the UAE’s largest city, read our introductory guide to find out how much properties are in Dubai.

What is the average cost of property in Dubai?

The costs of buying property in Dubai range from AED 250,000 (approximately £50,000) to over AED 250 million (approximately £50 million) according to the locale. Read on as we explore the areas and range of property for sale in Dubai.

An overview of the Dubai property market for UK investors

Ultra-luxury homes dominate Dubai’s super-prime real estate market. Off-plan property purchases are commonplace, accounting for around half of all property transactions. Branded residences form a significant proportion of the market – as reported in Gulf News, over 140 branded projects are planned by 2031.

The luxurious yet secure surroundings, and lack of income tax and capital gains tax, can be attractive to foreign property investors. Following local laws and customs is a must, and as highlighted on gov.uk, property law is no exception. UK property investors can legally take out a mortgage, but not all Dubai banks will lend to international buyers. Dubai’s Real Estate Law No. 7 permits overseas buyers to own property in designated freehold areas, though other property types such as leasehold agreements can be obtained for up to 99 years. Specialist, professional advice is strongly encouraged.

Want to find out more? Learn whether a non-resident can buy property in Dubai and explore current Dubai property prices.

How much does property cost in Dubai?

Property costs in Dubai rest on your choice of locality and property type, from modest residences to spacious ultra-luxury penthouses. As such, these property prices are offered as a guide only.

Property prices by area in Dubai

Dubai Marina

A freehold community with a ‘best of both worlds’ position between the city and Arabian Gulf, overseas buyers can buy luxury high-rise apartments in the desirable Dubai Marina area.

Average property price: AED 2.5 million apartment / AED 7.5 million villa

Downtown Dubai

The home of the Burj Khalifa and Dubai Mall, Downtown Dubai has an established reputation for luxury apartments.

Average property price: AED 3.5 million

Palm Jumeirah

Foreign buyers can purchase property in the freehold zone of Palm Jumeirah, a luxury waterfront community set in Nakheel’s manmade island.

Average property cost: AED 8.5 million apartment / AED 30 million villa

Emirates Hills

Drawing comparisons with Beverly Hills, the exclusive freehold zone of Emirates Hills offers high-net-worth international buyers spacious villas and mansions in a tranquil gated community.

Average property cost: AED 85 million

Arabian Ranches

Desirable Arabian Ranches is known as a family-friendly neighbourhood surrounded by green landscapes and leisure, with its villas offering convenient access to parks and golf courses.

Average property cost: AED 7 million

Property prices in Dubai by property type

• Studio and one-bed apartments start at around AED 250,000.
• A luxury villa in an exclusive area can cost AED 20-100 million.
• Branded residences can cost at least 40% more than comparable homes, with property prices ranging from around AED 2 million to in excess of AED 300 million.

Additional costs with buying property in Dubai

When buying property in Dubai, you will find similar purchase costs and property tax considerations to those involved in a UK property transaction. These are some of the costs to factor into how much it is to buy a Dubai property.

1. Property valuation fee – around AED 300 plus VAT at 5%
2. Mortgage arrangement fees – around 1% of the loan amount plus VAT at 5%
3. Estate agent fees – typically 2% of the property selling price plus VAT at 5%
4. Registering property ownership with the Dubai Land Department – 4% of the property selling price
5. Mortgage registration fees – AED 290 plus 0.25% of the total loan value
6. Service fees – under AED 5 psf to over AED 25 psf dependent on the RERA Service Charge and Maintenance Index for the area
7. Monthly housing fee – 5% of average rent in the area

Cost of buying off-plan properties in Dubai

Off-plan properties for sale in Dubai can attract additional costs, including an AED 40 Dubai Land Department fee applied to off-plan property purchases.

Want to find out more? Discover how to invest in Dubai property and how to buy a house in Dubai.

How much does a property lawyer cost in Dubai?

You will need a property lawyer who is experienced in Dubai property law, to ensure your transaction is legally compliant. They will arrange the Memorandum of Understanding, contract and No Objection Certificate (NOC), and ensure the property is correctly registered with the DLD. Fixed legal fees for services can cost AED 1,000 to AED 10,000, with hourly fees ranging from AED 1,000 up to AED 5,000 per hour.

In a property market as diverse as Dubai’s, property prices can vary greatly. Get in touch with our estate agents in Dubai to find out more, and we will be glad to help you find the ideal property.